Australian home values fell for a seventh consecutive month in October, with the pace of decline the fastest in at least 40 years, according to property research firm Cotality.
Cotality’s national Home Value Index fell 1.2 percent in October and is now 6.7 percent below its March peak, a drop of about A$63,400 for the median dwelling, which now stands at A$884,855. Capital city values are down 8.1 percent in seven months, close to the record 8.2 percent fall of 2017 to 2019, ABC News reported.
“This is really a demand-led downturn,” said Cotality head of research Gerard Burg, pointing to higher interest rates that have cut borrowing capacity and raised mortgage repayments, as well as weaker investor demand after federal budget changes to property tax breaks.
Sales over the past three months were 23 percent lower than a year earlier. Auction clearance rates in the combined capitals are running below 50 percent, the median time on market of 39 days is the longest since August 2020, and vendor discounting of 4.7 percent is the largest since May 2019.
Burg said buyers were likely to hold back until the Reserve Bank of Australia signals a change in direction on rates, which he does not expect until the latter half of 2027.
Sources: ABC News (Australia)
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